Premier Danielle Smith participated in a significant online roundtable with media members to discuss crucial aspects of Alberta’s energy relationship with the United States, the diplomatic approach to potential U.S. tariffs, and the broader implications for Canada’s trade policies. The conversation emphasized the need for a strategic and diplomatic response to the complex political landscape under the incoming U.S. administration.
Tariff Reprieve and U.S.-Canada Trade Relations
A central topic of the discussion was the U.S. government’s recent executive order, which provided a temporary reprieve from tariffs on Canadian imports, including oil. This reprieve, however, comes with a time-sensitive review period, with a decision expected by April 1. Premier Smith stressed that this reprieve is an opportunity for Canada to demonstrate the strength of its trade relationship with the United States and to work diplomatically to ensure the continued tariff-free status.
“We think our best approach now would be to focus on diplomacy and refrain from discussing retaliatory tariffs,” said Smith. She emphasized that Canada must present a positive and compelling case for maintaining tariff-free trade. The Premier noted that, without factoring energy, Canada actually purchases more U.S. goods and services than the U.S. buys from Canada, citing a $58 billion trade surplus.
Premier Smith advocated for expanding cross-border trade in goods and services and suggested areas where Canada could increase its purchasing power, including military equipment, infrastructure for electricity, and emerging technologies like AI and data centers. However, Smith’s focus was not solely on economic transactions; she also highlighted security concerns, particularly the importance of reinforcing border security between the two nations.
Border Security and NATO Commitment
A significant portion of the conversation revolved around border security, which Smith identified as a top priority for the U.S. administration. She acknowledged the American government’s concerns about illegal fentanyl, migrant issues, and gang activity. Smith reiterated that Canada must be seen as a reliable partner in addressing these challenges, emphasizing the need for swift implementation of measures already discussed, including increased border security resources.
In addition to border concerns, Premier Smith called for Canada to meet its NATO defense spending targets. She argued that Canada’s failure to contribute 2% of its GDP to NATO defense spending could become a point of contention in U.S.-Canada relations, particularly as the U.S. seeks to ramp up defense expenditures.
“We have to accelerate Canada’s NATO commitment,” Smith said. “If we want to show the Americans that we are a reliable partner in energy security, getting to the 2% NATO spending target is vital.”
Energy and National Security
Energy security was another critical topic discussed during the roundtable. Premier Smith emphasized that the U.S. cannot achieve its energy dominance goals without Canada, particularly with regard to heavy oil, which is vital for American refineries. She stated that Canada’s energy resources play a key role in supporting the U.S. energy sector, making the case for increased pipeline access to the U.S. to ensure reliable energy exports.
“There aren’t many places the Americans can get heavy oil from other than Canada,” said Smith. “Venezuela, Iran, Iraq—these are not ideal alternatives. We’ve got the oil, and we should be working to get more pipelines into the United States.”
Smith also touched on the broader implications of Canada’s energy policy, arguing that internal trade barriers between provinces should be lowered to facilitate the development of major infrastructure projects. She suggested revisiting projects like the Northern Gateway and Energy East pipelines to diversify Canada’s energy exports and reduce dependence on a single trading partner.
Navigating U.S. Politics and Diplomacy
When asked about President Donald Trump’s stance on tariffs, Premier Smith expressed cautious optimism. She acknowledged the president’s enthusiasm for tariffs but maintained that a diplomatic approach, rather than an adversarial one, would be the best strategy for Canada.
“We’re looking at this reprieve as an opportunity to make our case for why we should remain tariff-free,” Smith explained. “But we must be prepared for a different outcome if tariffs are imposed. We have to understand what the Americans need to maintain this special relationship, and that’s what we should be working on now.”
Smith also discussed the political dynamics in Washington, noting that while she had a productive meeting with Trump at Mar-a-Lago a few weeks ago, much of the negotiating power lies in building relationships within the U.S. administration. She emphasized that Alberta’s case for increased oil exports to the U.S. should align with American goals for energy security.
“The Americans want energy dominance, and we can help them achieve that,” Smith said. “Alberta can provide the energy security that the U.S. needs, and that’s why we should approach these negotiations with confidence.”
Future Steps and Canadian Unity
Looking ahead, Premier Smith stressed the importance of Canadian unity in navigating the evolving trade landscape. She urged the federal government and all provinces to work together in presenting a strong, unified front in negotiations with the U.S. She highlighted that energy, national security, and trade relations should be framed as a collective national interest, rather than focusing on individual provinces.
“The relationship between Canada and the U.S. is over 100 years old,” Smith concluded. “We need to work together to ensure it remains strong. This is about more than just Alberta’s interests; it’s about Canada’s future and our place in the world.”
In conclusion, Premier Smith’s roundtable offered valuable insights into the complexities of U.S.-Canada trade relations. As we prepare for the upcoming April 1 review, the diplomatic strategies will likely shape Canada’s approach to securing a favorable outcome in its dealings with the United States.